Understanding the future of mobile video, however, requires understanding how it is delivered to subscribers. Today’s third-generation (3G) mobile phones and networks, which are capable of simultaneous voice and data communication, primarily rely on unicast rather than broadcast. “Today’s 3G networks are predominantly unicast, meaning that if subscribers want to see something on their handsets, the content is delivered point-to-point between a content/ad server and the individual handset,” eMarketer says. This model applies whether the video is downloaded or streaming.

Unicast works well with current subscriber levels. But as the number of subscribers increases, providers may face difficulties sending video directly to larger and larger numbers of handsets at the same time.

Despite the uncertainties about delivery, marketers are optimistic. Says eMarketer Senior Analyst John du Pre Gauntt, “Every member of the mobile video value chain acknowledges that advertising will play a crucial role in developing the channel into a significant customer service.”